Pilot project to test mandatory pollution insurance

China is considering making environmental liability insurance mandatory for companies that pose high pollution risks in a bid to curtail hazards to air, land and water, the national environmental watchdog said.

The Ministry of Environmental Protection developed a draft plan in some pilot regions, and it is soliciting suggestions from insurance companies and environmental protection authorities.

The proposed insurance targets companies in sectors that pose a high risk of discharging pollutants into the environment, and covers the costs of cleanup after the contamination of air, water or land due to accidents involving hazardous substances.